Deck 19 Flashcards Preview

Regulation > Deck 19 > Flashcards

Flashcards in Deck 19 Deck (21):
1

The annual gift tax exclusion per donee for gifts of a present interest is:

$14,000

2

The maximum amount that can be transferred pursuant to a death tax-free is:

$5,430,000

3

What is the exemption amount for simple trusts?

$300; allowed in the calculation of taxable income

4

Income distribution deduction is the lessor of:

Distributable net income (DNI) or the actual amount distributed to the beneficiary

5

Definition of a gift:

Every transfer of money or property, whether real or personal, tangible or intangible, for less than adequate or full consideration

6

Four items that qualify for unlimited exclusion from gift tax

1) payments made directly to an educational institution for a spouse's tuition; 2) payments made directly to a health care provider for medical care; 3) charitable gifts; and 4) Marital transfers

7

A fiduciary must file a return on Form 1041 if the estate has gross income of:

$600 or more for the tax year

8

The standard deduction for a trust or an estate in the fiduciary income tax return is:

$0

9

Which fiduciary entities are required to use the calendar year as their taxable period for income tax purposes? (Estates and/or trusts)

Trusts must adopt a calendar year; Estates may choose the same accounting period as the decedent, or it may choose a calendar year or any fiscal year it wishes

10

Within how many months after the date of a decedent's death is the federal estate tax return (Form 706) due?

9 months

11

Generation-skipping transfer tax is imposed:

As a separate tax in addition to the gift and estate taxes

12

General rule to deduct administration expenses:

A statement must be filed with the income tax return stating that those deductions have not been taken on the decedent's estate tax return.

13

Alternate valuation date (estate tax) is the earlier of:

Date of distribution or 6 months after the date of death

14

When the creator is treated as the owner of the trust, it is referred to as what kind of trust?

Grantor trust

15

Martial deduction definition:

All items in the decedent's estate and transferred to the spouse

16

Distributable Net Income (DNI) =

Estate income - estate disbursements (includes capital gains); anything attributable to corpus not included

17

Form 1041

Annual Income Tax Return for Trusts and Estates

18

Tax year for estates is

Calendar year or fiscal year; "you can die anytime"

19

Tax year for trusts is:

Calendar year only; 12/31 is year-end

20

Nondiscretionary Expenses (bills you have to pay) include:

Medical expenses and administrative expenses

21

Discretionary Expenses includes:

Unlimited charitable deduction and unlimited marital deduction